Renamed Financial Conduct Authority (FCA) on 1 April 2013.
See FCA.
Glossary
Here you’ll find definitions of terms used on the AIC site. Enter the term you want to search for in the box, or click on the letter it begins with.
The period, normally 12 months, leading up to the financial year end.
The date an investment company will prepare its annual report and accounts to.
The Financial Conduct Authority is the competent authority for the purposes of the AIFM Directive in the UK. The Financial Conduct Authority has replaced the Financial Services Authority.
The independent body that regulates the financial services industry in the UK. Previously named Financial Services Authority (FSA).
The Financial Services Authority has been replaced by the Financial Conduct Authority and the Prudential Regulation Authority. The Financial Conduct Authority is the competent authority for the purposes of the AIFM Directive in the UK.
The definition of a financial instrument in the AIFM Directive is “an instrument as specified in Section C of Annex 1 to” the MiFID Directive. The MiFID Directive contains the following list of financial instruments:
(1) Transferable securities;
(2) Money-market instruments;
(3) Units in collective investment undertakings;
(4) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;
(5) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event);
(6) Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market and/or an MTF;
(7) Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in C.6 and not being for commercial purposes, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognised clearing houses or are subject to regular margin calls;
(8) Derivative instruments for the transfer of credit risk;
(9) Financial contracts for differences.
(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls.
This definition is particularly important for determining which depositary functions are required.
